Predatory Lending

You can file complaints with the Consumer Financial Protection Bureau (CFPB), the Texas Office of Consumer Credit Commissioner (OCCC), and the Texas Attorney General’s Consumer Protection Division. However, an attorney can help ensure your complaint is legally sound and actionable.

This happens when a lender gives you a loan based on the value of your home (equity) rather than your ability to repay. They know you likely can’t make the payments, intending to foreclose and take your home’s equity. This is a severe form of predatory lending.

Yes. As BNPL services grow, so do hidden fees and aggressive collection tactics. If you are facing undisclosed charges or unfair treatment from a BNPL service, we can review your case.

In our experience, the opposite is true. Lenders often bully consumers because they think you don’t know the law. When they see you have retained Cannon Legal PLLC, they know they must follow the rules or face legal consequences, which often leads to faster settlements.

Please gather your original loan agreement, monthly billing statements, a record of your payment history, and any emails or letters sent by the lender.

A contingency fee means our payment is contingent on your success. If we don’t win money for you, you don’t pay us legal fees for our time. This aligns our interests with yours—we only win when you win.

You may still have a case. If we find that the lender charged illegal interest or fees, you could be entitled to a refund of the overpaid amounts plus statutory damages.

Not necessarily. Subprime loans are for borrowers with lower credit scores and legally have higher rates to offset risk. However, a subprime loan becomes predatory when it includes abusive terms, hidden fees, or fraud that traps the borrower in a cycle of debt.

Yes. Under the FDCPA, debt collectors cannot threaten you, call you at unreasonable hours, or harass your family. We can send a legal “cease and desist” letter to stop the calls immediately and sue if they persist.

Not at all. A contract that violates state or federal law is often unenforceable. Even if you signed the papers, you may still have the right to sue for damages or have the loan modified if the terms were illegal or deceptive.

Loan flipping occurs when a lender encourages you to refinance a loan repeatedly over a short period. Each refinance generates new fees for the lender and strips equity from you without providing any real benefit. This is a classic predatory tactic we look for.

Texas borrowers are protected by the Texas Deceptive Trade Practices Act (DTPA) and specific chapters of the Texas Finance Code. Federal laws also apply, including the Truth in Lending Act (TILA) and the Fair Debt Collection Practices Act (FDCPA). Active military members have extra protection under the Military Lending Act (MLA).

Common red flags include interest rates in the triple digits, fees that were not clearly disclosed, high-pressure sales tactics, and “balloon payments” (a huge payment due at the end of the loan). If a lender promised “guaranteed approval” with no credit check, be cautious—this is a frequent trap.

Predatory lending is any unfair, deceptive, or fraudulent practice used by a lender to exploit a borrower. This often involves imposing unfair loan terms, such as excessive interest rates (usury), hidden “junk fees,” or loan structures that make it impossible to pay off the debt.